Applied Materials Achieves Key Industry Milestone: Ships 100th Copper CMP System to AMD for Its Fastest Microprocessor.

Business Editors/High Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 16, 2001

Use of Most Advanced Copper Application Substantiates Mirra Systems'

Superior Performance

Applied Materials, Inc. today announced that it has achieved a major milestone with the shipment of the 100th Mirra(R) CMP system for copper chip production, reinforcing its position as the industry's leading supplier of copper CMP solutions. This milestone CMP copper system was shipped to AMD's Fab 30 located in Dresden, Germany, to manufacture AMD Athlon(TM) processors. As the copper CMP tool of record at AMD, the shipment adds to an already large installed base of Mirra systems in Fab 30.

"Being the first semiconductor equipment supplier to reach the 100th copper CMP system shipment results from our ability to offer advanced process technology, flexibility and high productivity to our customers," said Chris Smith, vice president and general manager of Applied Materials' CMP Product Business Group. "Applied Materials has developed a family of CMP solutions consisting of the Mirra, Mirra Mesa(TM) and Reflexion(TM) CMP systems to support the full spectrum of 200mm and 300mm damascene chip integration schemes used by customers. We are pleased that AMD has selected the Mirra system, which we believe represents an endorsement of our CMP technology leadership."

Applied Materials' CMP products are the global market leading CMP systems for 200mm and 300mm wafers. The Mirra and Reflexion systems all feature advanced technologies that include the iScan(TM) monitor, which measures remaining film thickness in real time, and the FullScan(TM) endpoint detection to read across the entire surface area of the wafer, providing excellent dishing and erosion control. Combined with a unique multi-platen, multi-head architecture and copper CMP process, the systems deliver the industry's highest throughput, providing 20 percent higher wafers out than competing CMP solutions. Multi-step processing and a flexible architecture, together with the field-proven Titan Head(TM) polishers, provide customers with repeatable removal uniformity across the wafer, resulting in advanced device performance and high yield.

The market for copper CMP technology is expected to grow from $128 million in 2001 to $705 million by 2006, according to Dataquest. The total market for CMP, estimated to be $1.2 billion in 2001, is forecast to reach $2.6 billion by 2006. Applied Materials is the market share leader in copper CMP for 200mm and 300mm wafers.

About AMD

AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets with manufacturing facilities in the United States, Europe, Japan and Asia. AMD, a Fortune 500 and Standard & Poor's 500 company, produces microprocessors, flash memory devices, and support circuitry for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $4.6 billion in 2000. (NYSE: AMD).

Applied Materials (Nasdaq: AMAT), the largest supplier of products and services to the global semiconductor industry, is one of the world's leading information infrastructure providers. Applied Materials enables Information for Everyone(TM) by helping semiconductor manufacturers produce more powerful, portable and affordable chips. Applied Materials' Web site is http://www.appliedmaterials.com.